So Much For The “Shrinking Middle Class” Argument

From your friendly folks at First Things:

Using some sophisticated statistical techniques, Burkhauser, Larrimore, and Simon then correct for these factors, and find that, using this more accurate measure of economic resources, the American middle class has done quite well over time, including during the last business cycle of 2000-2007. They write, “When using our broadest measure of available resources—post-tax, post-transfer size-adjusted household income including the ex-ante value of in-kind health insurance benefits—median income growth of individual Americans improves to 36.7 percent over the period from 1979 to 2007, and by 4.8 percent between 2000 and 2007.” In other words, contra Stiglitz, middle class Americans have made substantial gains over the relevant periods. They have gotten richer—in fact, quite a bit richer—and not poorer.

Read it all.

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